Back Matter

The countries and territories included in the major country groups of the Fund’s World Economic Outlook are listed below.

Industrial countries:

Australia

Austria

Belgium

Canada

Denmark

Finland

France

Germany, Fed. Rep. of

Iceland

Ireland

Italy

Japan

Luxembourg

Netherlands

New Zealand

Norway

Spain

Sweden

Switzerland

United Kingdom

United States

Developing countries include all other Fund members (as of July 15, 1987), together with certain essentially autonomous dependent territories for which adequate statistics are available. For this study, this country classification has been modified to exclude the seven offshore banking centers (i.e., The Bahamas, Bahrain, the Cayman Islands, Hong Kong, the Netherlands Antilles, Panama, and Singapore). The regional breakdowns of data for developing countries and areas conform to the regional classification used in the Fund’s International Financial Statistics.

Market borrowers:

Algeria

Antigua and Barbuda

Argentina

Bahamas, The

Bolivia

Brazil

Chile

Colombia

Congo

Côte d’Ivoire

Cyprus

Ecuador

Gabon

Greece

Hong Kong

Hungary

Indonesia

Korea

Malaysia

Mexico

Nigeria

Panama

Papua New Guinea

Paraguay

Peru

Philippines

Portugal

Singapore

South Africa

Taiwan Province of China

Trinidad and Tobago

Uruguay

Venezuela

Yugoslavia

Official borrowers:

Afghanistan

Bahrain

Bangladesh

Bhutan

Burkina Faso

Burma

Burundi

Cape Verde

Central African Rep.

Chad

Comoros

Djibouti

Dominica

Dominican Rep.

El Salvador

Equatorial Guinea

Fiji

Gambia, The

Ghana

Grenada

Guatemala

Guinea

Guinea-Bissau

Guyana

Honduras

Jamaica

Jordan

Lao People’s Dem. Rep.

Liberia

Madagascar

Malawi

Maldives

Mali

Malta

Mauritania

Nepal

Netherlands Antilles

Nicaragua

Pakistan

Rwanda

São Tomé and Principe

Senegal

Seychelles

Sierra Leone

Somalia

St. Lucia

St. Vincent

Sudan

Swaziland

Syrian Arab Rep.

Tanzania

Togo

Tonga

Uganda

Viet Nam

Western Samoa

Yemen Arab Rep.

Yemen, People’s Dem. Rep. of

Zaïre

Zambia

Capital importing countries comprise all developing member countries of the Fund except:

Iran, Islamic Rep. of

Iraq

Kuwait

Libyan Arab Jamahiriya

Oman

Qatar

Saudi Arabia

United Arab Emirates

Fifteen heavily indebted countries:

Argentina

Bolivia

Brazil

Chile

Colombia

Côte d’Ivoire

Ecuador

Mexico

Morocco

Nigeria

Peru

Philippines

Uruguay

Venezuela

Yugoslavia

Appendix II Major Innovations in Instruments

The Floating Rate Euronote

During the late 1960s, commercial banks in the United States adopted a system of adjusting their prime rate weekly to reflect more closely the increases in their cost of funds. Banks charged a spread above the prime rate, which reflected the creditworthiness of the borrower. Such automatic or floating rate pricing of bank credit shifted the responsibility for increases in lending rates to the monetary authorities. It also shifted the interest rate risk from the bank to the borrower.

Floating rate pricing spread very rapidly to other banking sectors in the early 1970s. Floating rate pricing was adopted in the Eurobond market; the first Eurodollar floating rate note issue occurred in 1970 when the Italian State borrower Ente Nazionale per l’Energia Electtrica (ENEL) issued $150 million Eurodollar floating rate notes. Until the early 1980s, however, the floating rate note was largely dominated by its banking counterpart, the floating rate syndicated loan.

The securitization of international finance, which began in the early 1980s, meant that borrowers shifted to the floating rate note market from the syndicated loan market. In 1983, syndicated loans totaled $67 billion, while only $20 billion of floating rate Euronotes were issued. By 1986, however, floating rate note issues had reached $50 billion, while the volume of international syndicated loan credits had receded to $58 billion. This development was due in large part to the lower borrowing costs in the floating rate note market. New issues of floating rate notes also gained in comparison with fixed rate bonds, and floating rate notes accounted for 38 percent of total volume of fixed rate bonds and floating rate notes in 1985. The floating rate note was permitted for the first time in several non-dollar markets in 1985. Refinancing of high coupon bonds lowered the percentage of floating rate bonds in total fixed and floating rate issues to 25 percent in 1986.

The issuer cost of floating rate notes relative to LIBOR has decreased substantially, especially during 1985–86. Prime sovereign borrowers have been able to undertake large issues at below LIBOR. Second-tier sovereign borrowers and U.S. thrifts and regional banks also have received fine terms. Since 1985, the floating rate note market has introduced a number of innovative coupon reset mechanisms. About 80 percent of floating rate notes guarantee a minimum rate of interest, termed a “floor,” if the index drops below a certain level. Similarly, a significant number of floating rate notes have been issued with an upper limit on the coupon, a “cap.” A mismatched floating rate note has multiple data for selecting interest rates within a single interest payment period; that is, interest payments may be made semiannually, while the interest rate is reset at shorter intervals, for example, monthly. About 20 percent of all floating rate notes were mismatched during 1985.

The most significant innovation in the floating rate note market has been the recent large-scale issue of perpetual floating rate notes by commercial banks, particularly U.K. banks. Through 1986, there had been about 60 issues totaling $20 billion. The incentives for the issue of some types of perpetual floating rate notes were provided by several countries, including the United Kingdom, the United States, Canada, Australia, and France, which regarded such instruments as primary capital, if coupons may not be paid when a dividend payment has been cancelled.

The perpetual floating rate note sector of the Euromarket experienced a major liquidity crisis in December 1986, which marked the end of any expansion in this market in the foreseeable future, and which also affected the dated floating rate note adversely, as discussed in the text.

Currency and Interest Rate Swaps

The basic swap is an exchange of streams of payments over time between two parties. An interest rate swap is an exchange of interest cash flows in the same currency with the principal amounts remaining with the original parties. In currency swaps, the counterparties exchange the interest payments in one currency for interest payments in another currency and the parties also exchange the principal amounts at a negotiated exchange rate. There are three main types of interest rate swaps: coupon swaps (fixed rate against floating rate), basis swaps (e.g., LIBOR against certificates of deposit), and cross-exchange interest rate swaps (swaps of fixed rate flows in one currency to floating rate flows in another). It is estimated that U.S. banks participated as counterparties in $367 billion of interest rate swaps (notional principal) in 1986, compared with $186 billion at the end of 1985. The basic fixed/floating rate swaps make up the great bulk of total swap volume. Financial liberalization and removal of rigid issue calendars in several national markets has presented new opportunities for swap transactions.

The main motivation of the end-users in interest rate swaps is to exploit their comparative advantages and their relative scarcity in the two market segments. Typically, a highly regarded borrower will raise fixed rate funds and swap for floating rate funds raised by a less well-regarded borrower. Frequently, there are other types of swap opportunities. For example, relative risk-premiums for two borrowers may differ in two different markets, creating an arbitrage possibility.

Swaps are also used to transform exposure on the asset side. An institutional investor holding high-grade fixed rate assets can enter the swap market as a fixed rate payer, instead of selling a fixed rate asset and buying a floating rate asset.

U.S. money center banks and U.K. investment and merchant banks, as well as Japanese securities houses, are the main intermediaries in the swap market. For those institutions, swaps have developed into an important source of off-balance sheet earnings and an important vehicle to generate underwriting businesses. With the growth in volume of swap transactions, an active market between swap dealers has developed. Such dealers, frequently banks, enter swaps with counterparties for which they have arranged a bond issue and then enter into an offsetting swap with a second dealer, who in turn enters into another offsetting swap with another dealer, who offsets his swap with an end-user. It is estimated that the interdealer share of the swap market exceeds 50 percent. A secondary market for swaps has benefited from increased standardization of swap contracts under the auspices of the International Swap Dealers Association (ISDA).

There are three types of secondary market transactions: swap sales or assignments to a new counterparty, swap terminations, and reverse swaps. Swap sales and swap terminations extinguish the seller’s obligations, while reverse swaps are written to offset the effects of an existing swap.

Counterparties in swap transactions assume credit risk arising from the possibility that the counterparty does not perform under the swap contract and exposes the other counterparty to unexpected mismatch and losses if interest or currency rates have moved adversely. The swap technique has been one of the most successful of the recent financial innovations; 40 percent of all new international bond issues now involve a swap of one form or another.

A recent development in swap markets has been the growth of asset swaps; that is, the use of an interest or currency swap to transform an asset rather than a liability. The transactions mostly have involved the transformation of fixed rate assets into floating rate assets, through the creation of “synthetic floaters.” The asset holder, who receives a fixed rate coupon from his asset, agrees to a fixed rate payment on a fixed/floating interest rate swap in return for a floating rate payment. The swap counterparty thus receives fixed payments and pays floating without necessarily possessing floating rate assets; hence the term “synthetic floats.”

Exchange-Traded Financial Futures and Options Contracts

A futures contract is a standardized forward contract that is traded on an exchange. Financial futures markets date to the mid-1970s when the Chicago Board of Trade (CBOT) began trading in a futures contract based on Government National Mortgage Association (GNMA) instruments. This was followed with futures contracts for 90-day U.S. Treasury bills and a treasury bond contract. The trading volume in these futures contracts grew quickly, and by 1979 the daily volume of futures trading in the treasury bill market had exceeded the volume of trading in the underlying securities.

An important reason for the ready acceptance and continued popularity of the markets for interest rate futures has been the establishment of exchange clearinghouses that become the counterparty in every transaction. Thus, it is the soundness of the exchange, rather than the creditworthiness of the original issuer, that is of concern to the holder of the contract. Without the clearinghouse, the market would become much less liquid as the product would lose its homogeneity and trading volume would be smaller.

The second major advance in futures markets was the introduction of cash settlement rather than settlement in kind. Cash settlement allows the writer of a contract to use market prices at the closing of the contract to determine the gain or loss on the contract and settle in cash rather than deliver the physical commodity. This development has made it possible to write futures contracts on such synthetic securities as ocean freight, consumer price index, and others.

The development of futures markets paralleled the development of options contracts. In a futures contract, the holder has the right and the obligation to buy and sell the underlying security at a specified price during a specified period; in an option contract, the holder of the option has the right but not the obligation to buy (call option) or sell (put option) the security at the agreed price. Thus the risk of options contracts is asymmetrically distributed: the holder only risks losing the price (premium) paid for the options contracts, while the writer is liable for the full price movement in an adverse direction. The most successful options contracts have been those on foreign exchange.

In addition to the explicitly traded options contract, there has been a significant expansion in the use of options and forward contracts that are embedded in bonds. In this case, the bond’s principal at redemption has been linked to an index or price of another instrument or currency, or the yield movements have been restricted through caps or collars. Finally, the maturity of bonds has been subject to call and put provisions. The use of equity warrants has been particularly successful in the light of rising stock indices.

Financial futures and options can be regarded, together with interest rate and currency swaps, as the most successful of the recent financial innovations. The growth in the diversity of contracts traded, in the volume of some of the major contracts, and in the number of exchanges, has been rapid in recent years (Table 47). The trading volume of currency options doubled to 6 million contracts (with an average contract rise of $100,000) from 1985 to 1986; the total financial futures trading volume of all U.S. exchanges grew by 22 percent in 1986 to 120 million contracts (with an average contract size of $1 million), and the trading volume of financial options of all U.S. futures exchanges grew by 64 percent in 1986 to 27 million contracts (with an average contract size of $1 million).

Appendix III Statistical Tables

Table 14.Selected Economic Indicators, 1981–87(In billions of U.S. dollars; or in percent)

1Data on lending and deposit taking are derived from stock data on the reporting countries’ liabilities and assets, excluding changes attributed to exchange rate movements.

2As measured by differences in the outstanding liabilities of borrowing countries, defined as cross-border interbank accounts by residence of borrowing bank.

3Excluding offshore centers.

4Consisting of The Bahamas, Bahrain, the Cayman Islands, Hong Kong, the Netherlands Antilles, Panama, and Singapore.

5Transactors included in IFS measures for the world, to enhance global symmetry, but excluded from IFS measures for “All Countries.” The data comprise changes in the accounts of the Bank for International Settlements with banks other than central banks and changes in identified cross-border interbank accounts of centrally planned economies (excluding Fund members).

6Consisting of all developing countries except the eight Middle Eastern oil exporters (the Islamic Republic of Iran, Iraq, Kuwait, the Libyan Arab Jamahiriya, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) for which external debt statistics are either not available or are small in relation to external assets.

1Data on lending and deposit taking are derived from stock data on the reporting countries’ liabilities and assets, excluding changes attributed to exchange rate movements.

2As measured by differences in the outstanding liabilities of borrowing countries, defined as cross-border interbank accounts by residence of borrowing bank.

3Excluding offshore centers.

4Consisting of The Bahamas, Bahrain, the Cayman Islands, Hong Kong, the Netherlands Antilles, Panama, and Singapore.

5Transactors included in IFS measures for the world, to enhance global symmetry, but excluded from IFS measures for “All Countries.” The data comprise changes in the accounts of the Bank for International Settlements with banks other than central banks and changes in identified cross-border interbank accounts of centrally planned economies (excluding Fund members).

6Consisting of all developing countries except the eight Middle Eastern oil exporters (the Islamic Republic of Iran, Iraq, Kuwait, the Libyan Arab Jamahiriya, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) for which external debt statistics are either not available or are small in relation to external assets.

1Data on lending and deposit taking are derived from stock data on the reporting countries’ liabilities and assets, excluding changes attributed to exchange rate movements.

2As measured by differences in the outstanding liabilities of borrowing countries, defined as cross-border bank credits to nonbanks by residence of borrower.

3Excluding offshore centers.

4Consisting of The Bahamas, Bahrain, the Cayman Islands, Hong Kong, the Netherlands Antilles, Panama, and Singapore.

5Transactors included in IFS measures for the world, to enhance global symmetry, but excluded from IFS measures for “All Countries.” The data comprise changes in the accounts of international organizations (other than the Bank for International Settlements) with banks; and changes in identified cross-border banks accounts of nonbanks in centrally planned economies (excluding Fund members).

6Calculated as the difference between the amount that countries report as their banks’ positions with nonresident nonbanks in their monetary statistics and the amounts that banks in major financial centers report as their positions with nonbanks in each country.

7Consisting of all developing countries except the eight Middle Eastern oil exporters (the Islamic Republic of Iran, Iraq, Kuwait, the Libyan Arab Jamahiriya, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) for which external debt statistics are either not available or are small in relation to external assets.

1Data on lending and deposit taking are derived from stock data on the reporting countries’ liabilities and assets, excluding changes attributed to exchange rate movements.

2As measured by differences in the outstanding liabilities of borrowing countries, defined as cross-border bank credits to nonbanks by residence of borrower.

3Excluding offshore centers.

4Consisting of The Bahamas, Bahrain, the Cayman Islands, Hong Kong, the Netherlands Antilles, Panama, and Singapore.

5Transactors included in IFS measures for the world, to enhance global symmetry, but excluded from IFS measures for “All Countries.” The data comprise changes in the accounts of international organizations (other than the Bank for International Settlements) with banks; and changes in identified cross-border banks accounts of nonbanks in centrally planned economies (excluding Fund members).

6Calculated as the difference between the amount that countries report as their banks’ positions with nonresident nonbanks in their monetary statistics and the amounts that banks in major financial centers report as their positions with nonbanks in each country.

7Consisting of all developing countries except the eight Middle Eastern oil exporters (the Islamic Republic of Iran, Iraq, Kuwait, the Libyan Arab Jamahiriya, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) for which external debt statistics are either not available or are small in relation to external assets.

1The country classifications are those used by the Fund. Excludes special issues by development institutions placed directly with governments or central banks and, from October 1984, issues specifically targeted to foreigners.

1The country classifications are those used by the Fund. Excludes special issues by development institutions placed directly with governments or central banks and, from October 1984, issues specifically targeted to foreigners.

Table 19.Early Repayments of International Bonds, 1984–Third Quarter 1987(In billions of U.S. dollars)

1Data on lending and deposit taking are derived from stock data on the reporting countries’ liabilities and assets, excluding changes attributed to exchange rate movements.

2As measured by differences in the outstanding liabilities of borrowing countries defined as cross-border interbank accounts by residence of borrowing bank plus international bank credits to nonbanks by residence of borrower.

3Consisting of The Bahamas, Bahrain, the Cayman Islands, Hong Kong, the Netherlands Antilles, Panama, and Singapore.

4Excluding offshore centers.

5As measured by differences in the outstanding assets of depositing countries, defined as cross-border interbank accounts by residence of lending bank plus international bank deposits of nonbanks by residence of depositor.

1Data on lending and deposit taking are derived from stock data on the reporting countries’ liabilities and assets, excluding changes attributed to exchange rate movements.

2As measured by differences in the outstanding liabilities of borrowing countries defined as cross-border interbank accounts by residence of borrowing bank plus international bank credits to nonbanks by residence of borrower.

3Consisting of The Bahamas, Bahrain, the Cayman Islands, Hong Kong, the Netherlands Antilles, Panama, and Singapore.

4Excluding offshore centers.

5As measured by differences in the outstanding assets of depositing countries, defined as cross-border interbank accounts by residence of lending bank plus international bank deposits of nonbanks by residence of depositor.

1Arrangements approved (in principle or definitely) before January 1, 1986 were reported in Maxwell Watson, and others, International Capital Markets: Developments and Prospects. World Economic and Financial Surveys (Washington: International Monetary Fund, December 1986).

2For public sector debt pre-December 9, 1982, debt originally falling due prior to January 1, 1986 that has been previously restructured, and debt originally falling due after December 31, 1985 that has not been previously restructured. Excluded is indebtedness under the 1983 and 1985 term credit agreements and the 1985 trade credit and deposit facility, which is rescheduled on different terms. For private sector borrowers, the restructuring of all principal maturities of pre-December 9, 1982 debt maturing after December 31, 1985.

3Interest periods under all agreements will be converted from the existing periods to periods of 12 months.

4If on December 31, 1986 Honduras is current in its payment obligations, the margin over LIBOR will be reduced to 1 percentage point.

5Including the restructuring of the $950 million prepayment that had been deferred since October 1, 1985.

6These loans have an associated guarantee given by the World Bank in the later maturities equivalent to 50 percent of the nominal amount disbursed.

7Amount to be determined before the end of 1987. Amortization of rescheduled amounts subject to relending at the choice of creditors, but within certain limits of the domestic credit program established by the Mexican authorities.

8Spread will increase to 1¼ percentage points at the end of the grace period.

9Initial maturity of one year and a spread of 1¼ percent. Will be automatically converted to a medium-term loan if certain conditions are fulfilled.

11Under this agreement Zaire would make monthly payments amounting to $3.5 million for the period May 1986—April 1987.

12There will be monthly payments of $3 million for the May 1987-May 1988 period, except for July 1987 when the due payment is $3.5 million.

13The spread over LIBOR is expected to remain 1¾ percentage points for the first three years, and then decline to 1¼ percentage points for the final four years subject to the borrowers’ compliance with the terms and conditions of the agreement.

1Arrangements approved (in principle or definitely) before January 1, 1986 were reported in Maxwell Watson, and others, International Capital Markets: Developments and Prospects. World Economic and Financial Surveys (Washington: International Monetary Fund, December 1986).

2For public sector debt pre-December 9, 1982, debt originally falling due prior to January 1, 1986 that has been previously restructured, and debt originally falling due after December 31, 1985 that has not been previously restructured. Excluded is indebtedness under the 1983 and 1985 term credit agreements and the 1985 trade credit and deposit facility, which is rescheduled on different terms. For private sector borrowers, the restructuring of all principal maturities of pre-December 9, 1982 debt maturing after December 31, 1985.

3Interest periods under all agreements will be converted from the existing periods to periods of 12 months.

4If on December 31, 1986 Honduras is current in its payment obligations, the margin over LIBOR will be reduced to 1 percentage point.

5Including the restructuring of the $950 million prepayment that had been deferred since October 1, 1985.

6These loans have an associated guarantee given by the World Bank in the later maturities equivalent to 50 percent of the nominal amount disbursed.

7Amount to be determined before the end of 1987. Amortization of rescheduled amounts subject to relending at the choice of creditors, but within certain limits of the domestic credit program established by the Mexican authorities.

8Spread will increase to 1¼ percentage points at the end of the grace period.

9Initial maturity of one year and a spread of 1¼ percent. Will be automatically converted to a medium-term loan if certain conditions are fulfilled.

11Under this agreement Zaire would make monthly payments amounting to $3.5 million for the period May 1986—April 1987.

12There will be monthly payments of $3 million for the May 1987-May 1988 period, except for July 1987 when the due payment is $3.5 million.

13The spread over LIBOR is expected to remain 1¾ percentage points for the first three years, and then decline to 1¼ percentage points for the final four years subject to the borrowers’ compliance with the terms and conditions of the agreement.

Table 38.Aggregate Financial Structures of Major Financial Markets(Averages for period, in percent)

Sources: International Monetary Fund, International Financial Statistics; Salomon Brothers, Inc., How Big Is the World Bond Market? and International Equity Analysis.

1Narrow money equals M1 in all countries.

2Broad money equals M2 for the United States, M2 plus certificates of deposit for Japan, and M3 for the other countries.

3End of 1975.

4End of 1986.

5Sectoral imbalances measured by net decumulation of financial assets in flow-of-funds data (a minus sign denotes a sector that is a net user of credit). Where relevant, unidentified residual is not shown.

6Cumulative current account balance—positive value indicates net holdings of foreign assets. The cumulation started in 1956 for the Federal Republic of Germany, Japan, and Switzerland, 1953 for the United States, 1967 for France, and 1952 for the United Kingdom. This measure is biased to the extent that it ignores accumulations for periods prior to the starting year and capital gains and losses that arise from price and exchange rate movements.

Sources: International Monetary Fund, International Financial Statistics; Salomon Brothers, Inc., How Big Is the World Bond Market? and International Equity Analysis.

1Narrow money equals M1 in all countries.

2Broad money equals M2 for the United States, M2 plus certificates of deposit for Japan, and M3 for the other countries.

3End of 1975.

4End of 1986.

5Sectoral imbalances measured by net decumulation of financial assets in flow-of-funds data (a minus sign denotes a sector that is a net user of credit). Where relevant, unidentified residual is not shown.

6Cumulative current account balance—positive value indicates net holdings of foreign assets. The cumulation started in 1956 for the Federal Republic of Germany, Japan, and Switzerland, 1953 for the United States, 1967 for France, and 1952 for the United Kingdom. This measure is biased to the extent that it ignores accumulations for periods prior to the starting year and capital gains and losses that arise from price and exchange rate movements.

International bank lending (net) as ratio to world imports (in U.S. dollars)

7.5

4.6

7.2

7.8

8.6

8.7

5.2

4.9

4.9

5.6

7.8

International bond issues (net) as ratio to international bank lending (net)

37.1

39.7

26.7

18.4

11.9

17.6

51.6

54.1

68.9

73.3

52.7

Sources: International Monetary Fund, World Economic Outlook and International Financial Statistics; Organization for Economic Cooperation and Development, Financial Market Trends; and Bank for International Settlements.

1New international bond issues less redemptions, repurchases, and bank purchases of bonds.

Sources: International Monetary Fund, World Economic Outlook and International Financial Statistics; Organization for Economic Cooperation and Development, Financial Market Trends; and Bank for International Settlements.

1New international bond issues less redemptions, repurchases, and bank purchases of bonds.

1Foreign bonds are issued by a borrower who is of a nationality different from the country in which the bonds are issued. Such issues are usually underwritten and sold by a group of banks of the market country and are denominated in that country’s currency.

2Eurobonds are those underwritten and sold in various national markets simultaneously, usually through international syndicates of banks.

3These include certain public sector issues.

Source: Salomon Brothers, Inc., How Big Is the World Bond Market?

1Foreign bonds are issued by a borrower who is of a nationality different from the country in which the bonds are issued. Such issues are usually underwritten and sold by a group of banks of the market country and are denominated in that country’s currency.

2Eurobonds are those underwritten and sold in various national markets simultaneously, usually through international syndicates of banks.

Source: Bank for International Settlements, The Maturity Distribution of International Bank Lending.

1Up to June 1984, the reporting area for these data includes branches of U.S. banks and the affiliates in offshore reporting centers of banks in other countries. The December 1984 data are on a worldwide consolidated basis for all reporting countries. This series is only available semiannually and has longer lags than the data presented in quarterly publications of the Bank for International Settlements on international capital markets developments.

2Owing to a change in the coverage and partial consolidation of the reporting area, 1983 figures should not be directly compared with 1982 figures.

3Figures are based on fully consolidated reports of banks and should not be directly compared with 1983 figures.

4As of December 1985, Finland and Spain are included in the reporting area.

Source: Bank for International Settlements, The Maturity Distribution of International Bank Lending.

1Up to June 1984, the reporting area for these data includes branches of U.S. banks and the affiliates in offshore reporting centers of banks in other countries. The December 1984 data are on a worldwide consolidated basis for all reporting countries. This series is only available semiannually and has longer lags than the data presented in quarterly publications of the Bank for International Settlements on international capital markets developments.

2Owing to a change in the coverage and partial consolidation of the reporting area, 1983 figures should not be directly compared with 1982 figures.

3Figures are based on fully consolidated reports of banks and should not be directly compared with 1983 figures.

4As of December 1985, Finland and Spain are included in the reporting area.

Note: $A = Australian dollar; Can$ = Canadian dollar; F = French franc; DM = deutsche mark; ¥ = Japanese yen; ECU = European Currency Unit; f. = Netherlands guilder; $NZ = New Zealand dollar; Sw F = Swiss franc; £ = pound sterling; and US$ = U.S. dollar. For the futures markets, the number of contracts traded is for the whole of the indicated year or for the first half of 1986 and 1987; whereas for the options market, the contract numbers are for the month of December of the indicated year or for June of 1986 or 1987, respectively.Sources: Futures Industry Association, Monthly Volume Report and International Report; U.S. Commodity Futures Trading Commission; Euromoney (Corporate Finance Supplement), Futures and Options Directory; The Banker; U.S. Securities and Exchange Commission, Monthly Statistical Review.

1Treasury notes are of four- to six-year maturity for 1980, and of two-year and six and a half to ten-year maturity from 1982 to the present.

Note: $A = Australian dollar; Can$ = Canadian dollar; F = French franc; DM = deutsche mark; ¥ = Japanese yen; ECU = European Currency Unit; f. = Netherlands guilder; $NZ = New Zealand dollar; Sw F = Swiss franc; £ = pound sterling; and US$ = U.S. dollar. For the futures markets, the number of contracts traded is for the whole of the indicated year or for the first half of 1986 and 1987; whereas for the options market, the contract numbers are for the month of December of the indicated year or for June of 1986 or 1987, respectively.Sources: Futures Industry Association, Monthly Volume Report and International Report; U.S. Commodity Futures Trading Commission; Euromoney (Corporate Finance Supplement), Futures and Options Directory; The Banker; U.S. Securities and Exchange Commission, Monthly Statistical Review.

1Treasury notes are of four- to six-year maturity for 1980, and of two-year and six and a half to ten-year maturity from 1982 to the present.